Root (NASDAQ:ROOT) Trading 5.5% Higher – Still a Buy?

Root, Inc. (NASDAQ:ROOT)’s share price traded up 5.5% during trading on Thursday . The stock traded as high as $96.74 and last traded at $95.40. 120,872 shares traded hands during trading, a decline of 78% from the average session volume of 548,389 shares. The stock had previously closed at $90.45.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ROOT. Wells Fargo & Company increased their price target on Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. Jefferies Financial Group cut their price target on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. JMP Securities lowered Root from an “outperform” rating to a “market perform” rating in a report on Friday, November 22nd. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $90.00 price objective (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Six research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $59.13.

Root Trading Up 5.2 %

The firm has a fifty day simple moving average of $64.42 and a two-hundred day simple moving average of $56.02. The firm has a market capitalization of $1.44 billion, a P/E ratio of -78.31 and a beta of 2.47. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.61) by $1.96. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The company had revenue of $305.70 million during the quarter, compared to analyst estimates of $272.77 million. During the same quarter last year, the company earned ($3.16) earnings per share. The firm’s quarterly revenue was up 165.1% on a year-over-year basis. On average, equities research analysts anticipate that Root, Inc. will post -1.2 earnings per share for the current fiscal year.

Insider Transactions at Root

In other news, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $96.33, for a total value of $192,660.00. Following the sale, the director now directly owns 15,003 shares of the company’s stock, valued at $1,445,238.99. The trade was a 11.76 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder Meyer Malka sold 75,839 shares of the business’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the sale, the insider now directly owns 43,107 shares in the company, valued at approximately $3,500,719.47. This represents a 63.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 246,905 shares of company stock worth $20,440,479. Company insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On Root

A number of hedge funds have recently added to or reduced their stakes in ROOT. Point72 DIFC Ltd purchased a new stake in Root during the 3rd quarter valued at $33,000. MetLife Investment Management LLC raised its stake in Root by 129.1% during the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after buying an additional 2,889 shares during the last quarter. Versor Investments LP purchased a new stake in Root during the 3rd quarter valued at $216,000. Franklin Resources Inc. purchased a new stake in Root during the 3rd quarter valued at $249,000. Finally, Algert Global LLC purchased a new stake in Root during the 2nd quarter valued at $288,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

About Root

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.